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by: ChinecheremAnyalewachi
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It does make sense to get the most extensive auto insurance coverage in most cases. However, in some situations, it's sheer waste of money...

Because the law so demands, you must have this policy if you want to drive. But what if you know that you really won't gain from this policy? In such a case I'll advise that you buy the minimum demanded by law.

I'll show you an example and also show you how to do it without putting yourself at risk...

An old car with comprehensive and collision coverage won't do you any good. The only exemption to this is if yours is a classic (But that's another issue).

Insurers will calculate your car's value at the time of a claim based on what is known as Kelly's Blue Book. The painful thing about this "book" is that, for old cars, the value is too low. Therefore, your insurer pays you nothing or close to nothing notwithstanding how high and for how long your comprehensive or collision coverage was.

This means then that getting the most extensive coverage for your old car won't do you any good.

How about the liability part of your auto insurance policy? Fine, here's a better way to it...

If you want more coverage from liability claims per dollar spent on premiums, then the only way to go is buying an umbrella policy. The best part of this policy is that it will give far better protection from the weirdest of claims for very little outlay.

It could cost a 35-year old man in an area like New York City around $300 extra to raise his auto bodily injury liability coverage from $25,000/$50,000 to $100,000/$300,000. However, with an umbrella policy, he'll spend less than that to get $1 million worth of coverage. Furthermore, he could make it $2 million by just paying only about $75 more.

And I almost didn't tell you that it will cover all liability claims against you and NOT just those related to your vehicle.

That said, you must still get at least the minimum required by law. And since you just want to keep the law, look for the cheapest offers. That way, you'll only pay for what you need -- Staying law abiding. Just make sure you do NOT need to file claims for your vehicle before going with this option.

If you want to save even more without putting yourself at risk, take some time out to do extensive comparison shopping. Get and compare quotes from a wide range of reputable auto insurance quotes sites.

About the Author

I recommend these pages for cheap auto insurance quotes: Cheap auto insurance quotes and Car insurance quotes. Chimpuriche Chihunrumnanya writes on insurance.

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